Car Finance for Students - the Fact File

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It’s a fact, whether you’re travelling to and from university or college, getting to your job on time, even taking a quick trip to see family and friends, today’s busy student needs a car.

But how easy is it to get behind the wheel?

Good quality cars can be expensive and that usually means you’ll need student car finance to help buy one. Yet many mainstream finance companies can be reluctant to offer car finance for students. It can be very frustrating.

However, car finance for young drivers is available; even car finance for students with bad credit scores. To help you navigate your way around the choices, we’ve investigated student car finance on your behalf – uncovering the true facts.

Fact 1. You can get student car finance with Stoneacre

Stoneacre is able to provide car finance for students. That’s a fact!

We fully understand the importance of being able to drive during your student years. Having a car gives you the freedom and flexibility to combine part-time work with your full-time studies.

Despite this, most conventional finance providers are reluctant to provide car finance deals for students for two main reasons:

  • Lack of income

    Few students have a full-time job, so income levels tend to be low. We work with a large selection of understanding lenders to find the best car finance deals for young drivers. We’re here to help.

  • No credit rating

    Students haven’t had time to take out credit and build a credit profile. At Stoneacre, we don’t let these two issues hold students back. As long as you have a full valid driving licence and enough income to afford the repayments, we’ll always consider your application for young driver car finance.

Fact 2. Building your credit history can help you get student car finance

Not having a credit history isn’t unusual for students. However, when it comes to student car deals, it can sometimes hold back your application. Fortunately, there are a number of simple steps you can take to change this:

White Iphone on a wooden table - mobile contract
White Iphone on a wooden table - mobile contract

Mobile phone contract 

Most students have a mobile phone, many on contract. Making sure the contract is in your name and paying your bill monthly can build a positive credit profile that other lenders can see. Pay on time every time and lenders will also recognise you’re responsible with money when considering your application.

Credit car for finance
Credit car for finance

Bank account credit card

If you have a student bank account, your bank might offer you a student credit card with a low credit limit. Start using this to make small purchases, then pay off your balance in full at the end of each month. Again, this will show responsible money management and help build a positive credit profile.

Register on an electoral roll

If you're on a register, credit check companies can then identify your personal information and link it to you as it shows up on your credit report. Additionally, you will save time on manually entering your data and verifying details.

Fact 3. Improving your credit report can help first-time car buyers

Following this advice won’t just help you build your credit rating from scratch; it could also help improve your credit file if your credit rating is poor.

Make sure you’re listed on the Electoral Roll at your student accommodation address, even if the address may be temporary.

Lenders check on the Electoral Roll to confirm you’re officially resident at your address. If you’re not, they’ll be unlikely to provide student car finance.

The more assurances you provide, the more confident lenders will be.

Fact 4. Student car finance is available for young drivers with bad credit

We’re adept at providing student car finance and won’t necessarily hold this historic information against you. At Stoneacre, we understand that circumstances change, so we’re far more interested in your current situation and whether you can afford your repayments now and in the future.

Even if an applicant’s credit score is poor, we’ll work hard to arrange car finance for students with bad credit.

Fact 5. Being employed is important but not essential if you want a car as a student

Blur close-up of computer and pen - finance

Almost every lender will ask to see evidence of a regular income when considering an application for car finance for young drivers.

We understand this can be a challenge.

Most students who work, do so in a part-time job as it's impossible to also hold down a full-time job. This limits the amount you can earn.

At Stoneacre we don’t believe this should mean you can’t get car finance if you’re a student.

What matters more to us is your ability to repay your finance, so as long as you receive a regular income, we will consider your application.

We’ll also consider your application for young driver car finance if you’re an unemployed student and make a joint application with a family member who is working.

Fact 6. Finance and low insurance is available for student drivers

Piggy bank with coins around - saving for car finance

For young drivers aged 18-24, the cost of student car finance and insurance can be extremely high.

Due to a lack of driving experience, insurers tend to view this group as high risk.

The high cost of car insurance is a reflection of this and in some instances, it can price young drivers off the road.

In addition to sourcing car finance for students, our franchises also provide FREE, low or subsidised insurance offers.

One leading example of this is Ford’s Young Driver Insurance Contribution deal for students and young drivers aged 18-24. Finance your car with Ford Credit and Ford will provide a £500 insurance discount to drive down the cost of your motoring.

Finance Disclosure

For the purpose of this promotion Stoneacre is not acting as a lender but as an independent credit broker working with a panel of lenders. A list of these lenders is available upon request. Stoneacre do not charge a fee for an introduction to a finance provider, however, we may or may not receive a commission.

Decidebloom Ltd t/a Stoneacre, Omega Boulevard, Capitol Park, Thorne, DN8 5TX, is authorised and regulated by the Financial Conduct Authority. Our FCA number is 308726. You can verify this by visiting the FCA website or by contacting the FCA on 0800 111 6768.